case Homework Ch 15 Svet 4 On January 1 2018. Rick's Pawn Shop leased a truck from Chumley Motors for a six-year period with an option to extend the lease for three years, Rickshad no significant economic incentive as of the beginning of the lease to exercise the 3 year extension option Annual lease payments are 530,000 due on December 31 of each year, calculated by the lessor using a 4% discount rate The expected useful life of the asset is 9 years and its fair values 5182.000. Assume that at the beginning of the third year, January 1, 2020, Ricks had made signficant improvements to the truck whose cost could be recovered only if it exercises the extension option creating an expectation that extension of the lease was "reasonably certain the relevant interest rate at that time was 5% (EV 51 py orsi. EVA O S1. PVA 0:31. EVAD of 51 and PVAD E51) (Use appropriate factor(t) from the tables provided) Required: 1. Prepare the foumal entry, if any, at the beginning of the third year for the lessee to account for the reassessment 2. Prepare the journal entry. It any at the beginning of the third year for the lessor to account for the reassessment Print Complete this question by entering your answers in the tabs below. 0 Required Fegured2 Prepare the journal entry, if any, at the beginning of the third year for the less to account for the reassessment (if no entry is required for a transaction/event, select jumal entry required in the first account field. Round your intermate and final answers to eat whole door View transaction list Journal entry worksheet 1 Record the improvements to the truck by Rick's Die January 01 2020 Dobi Cro 26.115 Le payable 26110 ME GE Journal entry worksheet 1 Record the entry, if any, by the lessor to account for the reassessment. Note: Enter debits before credits. Date General Journal Debit Credit January 01, 2020 Record entry Clear entry View general jour